IN THE MATTER OF THE APPLICATION OF THE ROSEVILLE HOME TELEPHONE COMPANY FOR PERMISSION TO RAISE THEIR "RENTAL CHARGE ON FARMERS' LINES FROM TWENTY-FIVE CENTS PER MONTH TO FIFTY CENTS PER MONTH." Application No. 123-Decision No. 375. Decided December 30, 1912. : Increase of Rate Denied-Excessive Operating Expenses. Upon application for permission to increase the monthly rental for telephone service on certain farmers' lines, it appeared that the applicant had taken over the lines in question from The Pacific Telephone and Telegraph Company and was giving a more comprehensive service, which was likewise more expensive in point of operation, especially with reference to the item of sub-stations. Held: That the rate in effect was in accord with the usual rate throughout the state for like service, that the difficulty which was the basis of the application was primarily traceable to operating conditions and that there was no reason why unreasonable burdens due to the operating conditions of public utilities should be shifted arbitrarily to rate-payers, it being incumbent on telephone companies to correct such difficulties in order that they might not be a factor in any alleged necessity for increased rates. The application was, accordingly, dismissed.* L. L. King and G. M. Hannish, for applicants. GORDON, Commissioner: REPORT. This application is for permission to raise the monthy rental for telephone service on certain farmers' lines operated by the Roseville Home Telephone Company, Roseville, Placer County, California. *Editor's headnote. Thirteen stations are concerned in the proposed raise, involving a prospective increased revenue of $39.00 per year. The testimony discloses the fact that the Roseville Home Telephone Company is a corporation which took over the responsibilities of telephone service in and about Roseville from The Pacific Telephone and Telegraph Company. It is apparent that the system as conducted by the local company gives a more comprehensive service and is likewise more expensive in operation from the standpoint of service, plant, and equipment, with particular reference to the item of substations, than under the administration of the larger company. If these facts only were considered, there would appear to be reason in the petition of this company for an advance of the farmer line rate now under consideration. The Roseville Home Telephone Company is operating an exchange of approximately 139 stations, and the rate applying for the so-called farmer line service is in accord with the usual rate throughout the State, although under circumstances somewhat different than are usual. While the local conditions offer some justification for alteration in this case, it would appear that this is not the principal source of difficulty. The company has not sought relief primarily in the right direction. There is no reason why unreasonable burdens due to the operating conditions of public utilities should arbitrarily be shifted to rate payers, and it is incumbent on the telephone companies to correct such difficulties in order that they may not be a factor in any alleged necessity for increased rates. I, therefore, recommend the following order: ORDER. Roseville Home Telephone Company of Roseville, Placer County, California, having applied to this Commission for permission to increase the telephone rates charged on certain so-called farmers' lines served from the Roseville exchange, alleging that such increase was necessary in order that the company might receive an adequate income, and a public hearing having been held upon this application and it appearing from the evidence introduced at the hearing and from an investigation by the Commission that the difficulty which is the basis of this application is primarily traceable to operating conditions. It is hereby ordered, That the Roseville Home Telephone Company be denied permission to raise the rates as requested in the application in this proceeding. The order of this Commission in this proceeding must not be taken as an approval of the existing farmer line rates of applicant. The foregoing opinion and order are hereby approved and ordered filed as the opinion and order of the Railroad Commission of the State of California. Dated at San Francisco, California, this 30th day of December, 1912. IN THE MATTER OF THE APPLICATION OF SOUTHWESTERN HOME TELEPHONE COMPANY OF REDLANDS, TO RAISE TELEPHONE RATES. Application No. 286-Decision No. 376. Decided December 30, 1912. Increase of Rate-Maintenance by Subscribers. Upon application to increase the monthly charge for telephone service from $1.00 to $1.50, Held: That, considering the investment and the service rendered, the $1.50 rate will be reasonable under the conditions of the proposed contract submitted with the application, which provides for maintenance by the subscribers.* Charles A. Rolfe, for applicant. J. J. Prendergast, C. E. McEuen, D. A. Haslam, for telephone users. *Editor's headnote. GORDON, Commissioner: REPORT. This application is for permission to raise the monthly charge for telephone service on certain specified lines out of San Jacinto to Winchester, in Riverside County, California, from $1.00 per month to $1.50 per month. The proposed change in rate is applicable to a condition. entirely local. The lines involved represent an investment by the telephone company, and the company also furnishes the substation equipment, but thus far maintenance charges have been borne by the subscribers. It is apparent to me that the $1.00 rate formerly in effect has not been a fair rate, nor is the rate requested unreasonable, considering the investment and the service rendered, and the rate requested will be reasonable under the conditions of the proposed contract submitted with this application, which will provide for a continuance of maintenance by the subscribers. I, therefore, recommend that applicant be permitted to put into effect the rate of $1.50 per month under the terms incorporated in the proposed contract, this recommendation to be considered as applicable to the particular circumstances developed in this case. I submit, herewith, the following form of order: ORDER. The Southwestern Home Telephone Company, of Redlands, having applied to this Commission for permission to raise its monthly rental for telephone service on two specified circuits, extending from its San Jacinto office to the town of Winchester, in Riverside County, California, from $1.00 to $1.50 per month under terms as set out in a proposed contract accompanying their application, and it appearing from the testimony taken, together with the investigation by this Commission, that said proposed advanced rate is not unreasonable, under the circumstances involved, and a public hearing having been held on this application, It it hereby ordered, That the Southwestern Home Telephone Company, of Redlands, be and it hereby is authorized to advance, on and after January 1, 1913, the monthly charge for telephone service on the lines from San Jacinto to Winchester, Riverside County, California, from $1.00 to $1.50 per month. The conditions under which this service is to be rendered at the advanced rate of $1.50 per month shall be substantially those as set out in the proposed contract filed with said application. It must be understood that this order applies to this particular instance and is not to be taken as a general precedent. The foregoing opinion and order are hereby approved and ordered filed as the opinion and order of the Railroad Commission of the State of California. Dated at San Francisco, California, this 30th day of December, 1912. IN THE MATTER OF THE APPLICATION OF W. H. MOFFETT & SON OF LEMON COVE, CALIFORNIA, FOR PERMISSION TO INCREASE OF THE MONTHLY RATE ON LINES 6 AND 7 IN LEMON COVE, CALIFORNIA. Application No. 71-Decision No. 377. Decided December 30, 1912. Increase of Rate-Inadequate Return. Upon application for authority to increase the rates for Farmer Line Service from 30 cents to 50 cents per month, Held: That the existing charge of 30 cents was not compensatory under the conditions existing at Lemon Cove; that although the increase requested was small, it would be a material and actual factor in maintaining the telephone system on a compensatory basis. The application was, therefore, granted.* W. H. Moffett and J. A. Moffett, for applicant. *Editor's headnote. |